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Avio S.p.A.
(AVIO)
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Rating:74Outperform
Price Target:
€35.00
▼(-4.76% Downside)
Action:Upgraded
Date:03/15/26
The score is driven primarily by strong financial resilience (very low leverage) and a sharp improvement in operating and free cash flow, supported by a constructive price trend above key moving averages. Offsetting these positives are thin, compressed margins and a negative P/E that weakens valuation clarity.
Positive Factors
Very Low Leverage / Strong Balance Sheet
Extremely low leverage and a stronger capital base provide durable financial flexibility for multi-year aerospace programs. This reduces refinancing and interest-rate risk, supports contracting cycles, and allows the firm to fund development, absorb schedule delays, and pursue strategic investments without reliance on external debt.
Negative Factors
Compressed Margins / Thin Profitability
Low and compressed margins constrain the company's ability to convert higher revenue into durable profits and shareholder returns. In a cost-sensitive aerospace supply chain, thin operating and net margins reduce buffers against program overruns, inflation, and pricing pressure, limiting return on equity.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage / Strong Balance Sheet
Extremely low leverage and a stronger capital base provide durable financial flexibility for multi-year aerospace programs. This reduces refinancing and interest-rate risk, supports contracting cycles, and allows the firm to fund development, absorb schedule delays, and pursue strategic investments without reliance on external debt.
Read all positive factors
Avio S.p.A. (AVIO) vs. iShares MSCI Italy ETF (EWI)
Market Cap
€1.42B
Dividend Yield0.41%
Average Volume (3M)656.74K
Price to Earnings (P/E)86.3
Beta (1Y)0.73
Revenue Growth21.60%
EPS Growth84.46%
CountryIT
Employees1,352
SectorGeneral
Sector StrengthN/A
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.35
Shares Outstanding46,789,543
10 Day Avg. Volume749,352
30 Day Avg. Volume656,743
Financial Highlights & Ratios
PEG Ratio1.83
Price to Book (P/B)1.26
Price to Sales (P/S)1.48
P/FCF Ratio6.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€42.75Price Target Upside16.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.25
Revenue Forecast (FY)€594.53M
Avio S.p.A. Business Overview & Revenue Model
Company Description
Avio S.p.A., together with its subsidiaries, specializes in the design, development, and manufacturing of advanced propellant propulsion systems for space launch vehicles, catering to both domestic Italian and international markets. Its operations...
How the Company Makes Money
Avio makes money primarily by (1) delivering launch-system programs and propulsion hardware under long-term contracts and institutional programs, and (2) providing services linked to launcher development, manufacturing, integration, and operationa...
Avio S.p.A. Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
88
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 593.83M | 483.99M | 343.70M | 73.22M | 324.14M |
| Gross Profit | 115.79M | 130.03M | 113.89M | 72.40M | 96.64M |
| EBITDA | 34.41M | 23.97M | 22.62M | 21.45M | 30.15M |
| Net Income | 10.48M | 6.09M | 6.49M | -435.00K | 8.48M |
Balance Sheet | |||||
| Total Assets | 1.66B | 1.09B | 1.06B | 1.29B | 1.24B |
| Cash, Cash Equivalents and Short-Term Investments | 291.85M | 101.68M | 95.59M | 131.40M | 104.61M |
| Total Debt | 10.14M | 11.59M | 19.46M | 56.95M | 47.45M |
| Total Liabilities | 955.58M | 779.52M | 744.75M | 982.10M | 926.12M |
| Stockholders Equity | 697.32M | 302.83M | 300.62M | 293.66M | 302.48M |
Cash Flow | |||||
| Free Cash Flow | 140.33M | 25.10M | 6.14M | 33.22M | 7.54M |
| Operating Cash Flow | 168.08M | 60.26M | 42.48M | 65.74M | 41.26M |
| Investing Cash Flow | -44.25M | -35.16M | -38.85M | -34.23M | -33.71M |
| Financing Cash Flow | 376.33M | -19.01M | -39.44M | -4.72M | -27.59M |
Avio S.p.A. Technical Analysis
Negative
36.75
Price Trends
33.95
Negative
34.37
Negative
33.81
Negative
Market Momentum
-1.02
Positive
39.12
Neutral
10.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:AVIO, the sentiment is Negative. The current price of 36.75 is above the 20-day moving average (MA) of 31.57, above the 50-day MA of 33.95, and above the 200-day MA of 33.81, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 39.12 is Neutral, neither overbought nor oversold. The STOCH value of 10.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IT:AVIO.
Avio S.p.A. Peers Comparison
UnderperformOutperform
Sector (55)
IT:AVIO
Avio S.p.A.
30.22
11.22
59.06%
IT:FCT
Fincantieri S.p.A.
12.07
-4.27
-26.13%
IT:LDO
Leonardo Spa
50.37
4.49
9.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.